"German Industry and Commerce in Beijing has been implementing projects and activities on environmental topics to support technology cooperation between the two countries," Voss says.

Many German companies excel as global technology leaders, especially SMEs, she says. When they operate in China they bring technology and work closely with Chinese partners to foster innovation.

Environmental protection is an example of where this is happening. "Germany has companies that can offer the products and solutions that China needs to achieve its ambitious goals," Voss says. "Many of them are market leaders for integrated environmental protection in industrial production and are eager to share their know-how and experience with their Chinese partners."

German companies believe challenges such as climate change and urbanization can only be tackled using modern technological solutions.

Voss and German Industry and Commerce have held many seminars, workshops and construction training programs throughout China.

"Topics such as electromobility or energy efficiency are at the top of our agenda, too," Voss says.

The Chinese government's commitment to new reforms is impressive, but considering the problems, the changes cannot happen overnight, she says.

Persuading local governments to implement new laws and regulations will require time, she says. "They will need to realize the importance of deep reforms to ensure the long-term economic and political success of their regions."

The central government in Beijing has set the direction for a prosperous future, promising to open more industries for participation by private companies and to minimize subsidies for state-owned enterprises.

These measures will encourage organic business competition, ignite innovation and result in long-term cost reduction, she says.

 

German businesses in China appreciate these steps because they foster a level playing field for all companies conducting business in the country.

According to the organization's annual business confidence survey, chamber members are optimistic about their businesses in the coming years. In 2012, 22.4 percent of respondents said they perceived their business outlook to be improving. This year the figure rose to 40.5 percent, showing more confidence in the development of the Chinese market.

"I would like to stress again that China is not only a profitable manufacturing base or just a market for selling products, but also a partner for technology collaboration," Voss says.

A good business partnership should embrace two technologically strong parties, which is why Germany is eager to promote "Invented in China" solutions, she says.

In recent years. more and more Chinese companies have gained experience and become global players in innovation. Voss believes Germany acknowledges this development and is highly interested in China's innovative capacity.

China and Germany are closely connected and indeed depend on each other to a large degree. China is Germany's most important trading partner in the Asia-Pacific region. Germany is the biggest trading partner of China and the largest investor to China in the EU.

Over the years, German and Chinese companies have developed a successful and mutually beneficial relationship: German companies have supplied know-how and technology that Chinese companies have used to cater to their own customers.

"This complementarity will continue in the coming years, especially in many of the strategically important technologies," Voss says, adding that the collaboration will foster economic growth and increase competition and innovation in both countries.